Legislature(1999 - 2000)
2000-02-03 Senate Journal
Full Journal pdf2000-02-03 Senate Journal Page 2182 SB 246 SENATE BILL NO. 246 BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR, entitled: 2000-02-03 Senate Journal Page 2183 SB 246 An Act relating to claims against permanent fund dividends to pay certain amounts owed to state agencies and to fees for processing claims against and assignments of permanent fund dividends; and providing for an effective date. was read the first time and referred to the State Affairs and Finance Committees. Fiscal note published today from Department of Labor. Governors transmittal letter dated February 2: Dear President Pearce: Some state agencies are currently allowed to seek from individuals overdue payments of money due the state through a simple administrative collection of permanent fund dividends. But most state agencies still need to use a time consuming and costly court action to attach an individual's permanent fund dividend. It makes sense for all our state agencies to have access to this "fast track" method of collecting from a person who receives a permanent fund dividend while in arrears with payments lawfully due to the state. This bill I transmit today accomplishes this change in law. Examples of agencies now able to attach permanent fund dividends with a simple administrative action include the Department of Health and Social Services, for reimbursement of certain court-ordered treatment, and the Alaska Commission on Postsecondary Education for student loans in default. But the Department of Labor and Workforce Development, for example, must file a small claims court action or seek criminal prosecution to recover overpaid unemployment insurance benefits and fraud penalties. Partly as a result of this cumbersome method, the department estimates the state is owed $4.5 million in outstanding benefits received by fraudulent means, $3.6 million in statutory penalties, and $1.6 million for overpaid benefits. Not only will this bill increase recovery rates, but because these owed benefits are paid by employer taxes, it will reduce employer tax rates within the state. 2000-02-03 Senate Journal Page 2184 SB 246 A state agency would not be required to use these new procedures for collection. Any agency that elects to use the new procedures would be required to notify the individual of the claim with a fair opportunity for a hearing at which the individual could contest the agencys claim to the permanent fund dividend. If a hearing is not requested or the claim is resolved in favor of the state agency, the agency may collect the money from the individual's permanent fund dividend without filing a court action. Passage of this measure gives state agencies an additional tool to recover money that is lawfully owed to the state under existing state laws. Sincerely, /s/ Tony Knowles Governor